July 13, 2021, | AtoZ Markets- Gold futures traded higher, with prices finding support following data showing rising U.S. inflation and dovish comments from members of Federal Reserve.
U.S. cost of living in June saw the biggest climb since 2008, with the consumer price index up 0.9%, exceeding the 0.5% advance forecast by economists polled by The Wall Street Journal.
Likewise, August gold rose $9, or 0.5%, after declining 0.3% on Monday.
Also, the president of the St. Louis Fed James Bullard said Tuesday the Federal Reserve should start reducing the stimulus it provides to the U.S. economy, though he added the reduction didn’t need to start immediately.
“I think with the economy growing at 7% and the pandemic coming under better and better control, I think the time is right to pull back emergency measures,” he told The Wall Street Journal in an interview published Tuesday.
Moving Averages Alert
The daily chart of the price of gold presents us with an important alert that we must consider.
If we look closely, the 60, 100 and 200-day exponential moving averages are getting closer, and the possibility of a triple crossover appears as a good trading possibility.
The current price of moving averages are:
$1810,85 (100 EMA)
$1805,60 (200 EMA)
As we can see, this closeness between prices could show us a new scenario for the metal. However, it is important for the gold price to remain above the $1789.75 area.
At a bullish level, the next areas to consider are located at $ 1817.29 and $ 1826.10, while at a bearish level the following important supports appear at $ 1796.13, $ 1792.05 and $ 1787.32.
Remember that moving averages help both to identify if the market is in trend, as well as its direction.It is very important to see that when investors agree for so many days on a common zone, it means that this price could be an important turning point for the market.
Therefore, from now on it is important to monitor the price of gold, and to be remain alert when this triple crossing of moving averages occurs.
Please tell us if you have ever used moving averages in your trading strategy and how you did it.